DITEM EXPLORATIONS INC.
TSX VENTURE : DIT

DITEM EXPLORATIONS INC.

January 20, 2006 15:49 ET

Ditem Explorations Inc.: Uranium Joint Venture in Saskatchewan

MONTREAL, QUEBEC--(CCNMatthews - Jan. 20, 2006) - Ditem (TSX VENTURE:DIT) is pleased to announce the principal terms of a letter of intent ("LOI") with Golden Valley Mines (TSX VENTURE:GZZ) allowing Ditem to earn up to a 60% interest in the Beartooth Island Prospect, a 23,760 hectares (58,712 acres) property located along the northwest margin of the Athabasca Basin. The property is located approximately 72 km southwest of Uranium City, Saskatchewan. Ditem considers this property to be an opportunity to broaden its scope geographically and in terms of target commodities.

Background: Saskatchewan now accounts for 100% of Canadian production of uranium, is the world's largest producer (producing approximately 30% of worldwide supply), and hosts reserves of approximately 40 years at current production rates. Several world-class deposits are located in the Athabasca Basin including Rabbit Lake, Cluff Lake, and Key Lake. New mine supply of approximately 93,000,000 pounds/year is outpaced by current nuclear power plant consumption trends of approximately 147,000,000 pounds/year (www.world-nuclear.org), contributing to a steady increase in the spot price of uranium from $10.10/pound in March 2003 to over US $37/pound at present.

The Athabasca Basin uranium mines produce from deposits that occur at an erosional unconformity marking the contact of sediments with underlying basement crystalline rocks. At the Beartooth Island property, sedimentary rocks of the Athabasca Basin are gently dipping, and consist essentially of orthoquartzite with numerous thin beds of siltstone, mudstone and occasional sub-arkose.

Previous History at Beartooth Island:

In the 1970's, exploration on the property followed the discovery of 222 radioactive glacial erratics located on Beartooth Island with an average scintillometer reading of 1000 counts per second ("cps") and isolated readings exceeding 15,000 cps (74N04-NE-0001). Two radioactive sources were identified in the area: the first consists of a low-grade fracture zone with a topographic low within 300 meters of the up-glacier advance direction. The second source consists of a very large, high-grade zone 1 to 3 kilometres long located northeast from the island at 60 degrees (Saskatchewan Mineral Deposits Index - Mineral Property #: 2072). The initial claims were staked in the fall of 1976. Follow-up exploration programs from 1978 to 1980 included soil sampling and ground scintillometer surveys, an airborne EM and magnetic survey, surficial geological survey, radioactive boulder fan study, limited diamond drilling (five drill holes totalling 1007 meters), ground geophysical surveys as well as marine seismic and radiometric surveys.

Ditem is now planning an initial high-resolution, deep-penetrating airborne magnetic and electromagnetic survey to be followed by additional work and a drilling program.

Terms of the Option/Joint Venture:

Ditem may earn an initial 50% interest by incurring aggregate exploration expenditures of $1,000,000 over three years. In the fourth year of the agreement, Ditem may then elect to increase its interest by 10% (to an aggregate 60% interest) by incurring an additional $2,000,000 in exploration expenditures. Finally, Ditem may then enhance its position by acquiring an additional 6% interest (aggregate 66%) in the property provided that it deliver a bankable feasibility study within 10-years from the signing of the final agreement. Golden Valley will be operator during the option period. Golden Valley will retain an aggregate 34% interest following vesting.

In conjunction with this transaction, and as partial consideration for the work commitment, Ditem shall issue to Golden Valley an aggregate 2,000,000 share purchase warrants. Each warrant shall entitle Golden Valley to acquire one common share of Ditem (aggregate 2,000,000) for a period of 2 years from the date of issuance at a price of $0.10 per common share, and Golden Valley has undertaken to exercise half of the warrants within 45 days of issuance. No commissions are payable in connection with this transaction, and all securities issued will be subject to the regulatory four month hold period.

Ditem (9.3 million shares, fully diluted) has been active in diamond exploration in the Otish Mountains and Temiscamingue areas in Quebec since 1996. It has explored for and found diamonds on its Temiscamingue, Beaver Lake, Tichegami and Beaver Lake South properties. The company has granted an option to Strateco to explore its Matoush property in the Otish Mountains (see May 3rd 2005 press release). Ditem plans to undertake a major financing in the coming weeks.

The transactions disclosed herein are subject to all the required board and regulatory approvals of both companies.

The TSX Venture Exchange has neither approved nor disapproved the information contained in this press release.

Contact Information